Personal bankruptcy filings are soaring in 2026, signaling growing economic distress

Declaring bankruptcy when you're drowning in debt should be a last resort. thewet/iStock via Getty Images Plus The number of Americans who file for bankruptcy is growing. More than 500,000 people took this step in 2025, nearly 50% more than in 2022. And the numbers have kept on climbing, with a 12% jump in June 2026 from a year earlier as many consumers struggled to pay their bills. I am a business school professor who has researched bankruptcies and whether, when you are at the end of your…